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From The Financial Times
Transparency on extractive industries will help beat corruption

Published: August 24 2010.  
From Mr Frank Vogl

Sir, Several recent articles have drawn attention to key developments in bringing to light corruption in African extractive industries. New US legislation may now lead to a quantum leap in replacing the opacity that clouds this sector with transparency.

Tucked into the new US financial reform law that President Barack Obama recently signed are provisions that require US companies in the oil, gas and mining businesses to file independently audited statements on their payments to foreign governments to the Securities and Exchange Commission.

Much of the credit for the latest breakthrough goes to the Publish What You Pay coalition of more than 600 civil society organisations and to one of its prime supporters, philanthropist George Soros, who weighed in to push for the recent US legislation.

Research by Global Witness in the UK, among others, has also contributed greatly to public understanding of just why the leaders of so many natural resource rich African countries are so wealthy and their citizens are among the world’s poorest peoples.

Further efforts will be made by civil society to force still greater transparency in the extractive industries’ sector. They are likely to push harder for constructive approaches by host governments and companies within the forum of the Extractive Industries Transparency Initiative, which brings all parties together.

What is now essential, however, is that the major minerals’ importing countries should now redouble their efforts to curb the rampant corruption pursued by the leaders of such exporting countries as Angola, the Democratic Republic of Congo, Equatorial Guinea and Zimbabwe, to name just a few.

Necessary measures include enforcing tough constraints on the global sale of “conflict minerals” and strengthening anti-money-laundering approaches. More important still, given the recent Toronto Group of 20 pledge in June to report at the G20 summit in Seoul in November on new anti-corruption actions, every effort should be made to ensure that all governments follow the new US lead and force their companies to disclose payments to governments in the oil, gas and mining sectors – including such G20 members as China, France, Russia, Saudi Arabia and the UK.

Published with permission from The Financial Times

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